A Sikh teenager excluded from school for breaking a "no jewellery" rule by refusing to remove a bangle which is central to her faith was a victim of unlawful discrimination, a judge ruled today.

The high court judgment means Sarika Watkins-Singh, 14, will return to Aberdare girls' school in South Wales in September - wearing the kara, a slim steel bracelet.

The school had twice suspended Sarika for refusing to remove the bangle, which her lawyers told Mr Justice Silber was as important to her as it was to England spin bowler Monty Panesar, who has been pictured wearing the bangle.

Sarika, of mixed Welsh and Punjabi origin, of Cwmbach, near Aberdare, was at first taught in isolation and eventually excluded for refusing to take off the bangle in defiance of the school's policy. This banned girls from wearing any jewellery other than a wristwatch and plain ear studs.

Today, the judge declared that the school was guilty of indirect discrimination under race relations and equality laws.

After the judgment, Sarika's mother, Sinita, 38, said: "We are over the moon. It is just such a relief."

The teenager claimed she was a victim of unlawful discrimination when she was excluded from school last November.

She was enrolled at Mountain Ash comprehensive school, where she is allowed to wear the kara, in February, pending the outcome of the court challenge.

Human rights group Liberty, which has been supporting Sarika, claims the school breached race, equality and human rights laws by not allowing her to wear the kara.

However, school leaders were disappointed by the judgment, saying it appeared to contradict previous rulings.

Martin Ward, the deputy general secretary of the Association of School and College Leaders, said: "We are disappointed that the courts have failed to support the school in this instance.

"The school had offered the student reasonable alternatives to accommodate her religious beliefs, such as wearing the bangle but not so that it was on display, and it is frustrating that the courts did not find this acceptable."

He said the judgment would not make sense to headteachers, parents and students.

"The purpose of school uniform is to create a community ethos and no individual pupils should be able to go their own way. Previous judgments recently have reinforced the right of the governing body to make a judgement, following consultation with the community, on what uniform is reasonable."

Jeffrey Bacon, a reknowned employment barrister specialising in discrimination, said the judgment would not set a precedent for schools to accept all religious symbols.

"The judge recognised that it's one of the five 'kakars' [symbols of Sikhism], which is significant and would suggest schools and employers shouldn't start running for cover and allowing people to wear everything. But it does pave the way for people to look for chinks in the armour."

Bacon, from Littleton Chambers and who is married to a Sikh, said most Sikhs wear the kara and the judgment was important because it defined it as not being a piece of jewellery.

"To most people the kara looks like a piece of jewellery but he judged it be one of the five symbols of Sikhism. It would be hard for other people to try and fit into that.

"Sikhs as a religious or ethnic group would be less able to comply with the school's policy, which is the start of indirect discrimination," he said.

The five Ks of Sikhism

Kesh – not cutting hairKanga – the comb to keep hair clean and tidyKara – the bracelet symbolising restraint from evil deeds and the infinity of GodKirpan – the sword emblem of courage and self-defenseKachehra – a pair of knee-length shorts that represent living a faithful life